Can Insurance Cover Business Defamation Cases?

Running a small business of your own can be an extremely rewarding process. Small business owners are often considered the most satisfied workers anywhere in the country, after all. 

However, there is also a great deal of work you’ll need to do to ensure that your business continues to run smoothly.

One area that is less discussed is defending yourself against libel and slander. The world of the web can lead to more common instances of business defamation, and you need to know what to do in this kind of scenario. 

Can insurance aid you in a defamation case? Can you get insurance coverage for defamation? Read on and we’ll walk you through what you need to know.

Understanding Business Defamation

What does it mean for your business to be defamed? When a person speaks out in a public manner and accuses your business of untrue things, it can impact your business. It may turn customers away and impact your ability to make a profit.

If someone were to do this without any basis, in fact, they would be committing a crime under the law. Libel and slander are taken seriously in court, and impacting an operating business in this way can have serious consequences.

That being said, working through the entirety of a defamation case can be a lot of work, time, and money. Even if you win the case, the expenses and work involved can be debilitating. 

It’s for this reason that many business owners wonder if their business insurance will cover the needed costs. 

Insurance Coverage for Defamation? 

Not all business insurance plans offer the same kind of coverage, so whether the insurance you have will or not will vary. There are many business insurance plans that do have some level of coverage for this kind of legal scenario.

Often, this can be found under the general liability section of your coverage.

Most general liability plans offer protection against something called advertising damage, which refers to the potential for defamation or slander. Should you get in a scenario where a defamation case comes to be, your insurance should help to cover some of the costs.

However, to what extent you can rely on your insurance will depend on the coverage and a number of specifications. You should speak to your insurance provider ahead of time and try and understand the full extent of what the company is willing to offer.

In some cases, insurance companies might only step in if you are being sued for defamation, not bringing charges against someone else. It’s important to clarify these things as much as possible ahead of time.

Dealing With Slander Lawsuits

No one wants to get into a legal situation involving slander or libel, but it does happen. If you do find yourself in this tricky position, could your insurance help out with your business defamation case?

The above information can help you understand the nuances. While some business insurance plans might cover this kind of situation, others won’t, which means close reading will be necessary.

Need more advice on running your business? Keep scrolling our blog for more.